Deal Structuring Participant
pptx
keyboard_arrow_up
School
Guilford Technical Community College *
*We aren’t endorsed by this school
Course
100
Subject
Finance
Date
Jan 9, 2024
Type
pptx
Pages
7
Uploaded by UltraCrocodile1962
Credit Memo
[●] 2020
Executive summary
Transaction overview
Sources & Uses
Pro Forma Capitalization Table
Davis Industries Corporation (“Davis Industries” or the “Company”) is a medical devices manufacturer that delivers innovative infection prevention products and services for the healthcare market
Davis Industries specializes in the following reportable segments: Endoscopy, Water Purification and Filtration, Health Disposables, and Dialysis
For the LTM period ended July 31, 2017, Davis Industries generated revenue of $480.3 million and adjusted EBITDA of $99.8 million
Davis Industries is currently exploring how to refinance existing debt on its balance sheet
Davis Industries has $126mm of existing debt that is split into two tranches (“Tranche A” and “Tranche B”) that both mature later this year
Davis Industries is considering putting in place a $200 million Revolving Credit Facility, the proceeds of which would be used to refinance Tranche A and Tranche B
Pro Forma for the transaction, total leverage will be 1.3x based on LTM Adjusted EBITDA of $99.8 million
Sources ($mm)
Before Transaction
After Transaction
New Revolving Credit Facility
126.0 ($mm)
Amount
x EBITDA
Amount
x EBITDA
Total Sources
$126.0 Tranche A
80.0 0.8x
Tranche B
46.0 0.5x
Uses ($mm)
New Revolving Credit Facility
- - Repay Tranche A
80.0 Total Debt
$ 126.0 1.3x
Repay Tranche B
46.0 Total Uses
$126.0 Adjusted EBITDA
$99.8 $ 99.8
Financial overview
Davis Industries Corporation - Financial Summary
FYE July 31,
FYE July 31,
$ in millions
2015
2016
2017
$ in millions
2015
2016
2017
Income Statement
:
Cash Flow Statement
:
Revenue
$353.1
$415.8
Cash flow from operations
$39.1
$49.0
% growth
17.7%
15.5%
Capital expenditures
(7.9)
(11.4)
Free Cash Flow
31.1
37.5
43.1
Cost of Goods Sold
188.0
215.2
242.5
Gross Profit
165.1
200.6
Acquisitions
(20.4)
(65.0)
Gross margin
46.8%
48.3%
49.5%
Dividends paid
(2.6)
(3.1)
Total operating expenses
116.3
142.6
172.9
Operating income
48.8
58.0
EBITDA calculation
:
Operating margin
13.8%
14.0%
13.5%
Adjusted EBITDA
$70.2
$86.3
$99.8
Net income
27.8
34.9
Credit ratios
:
Net profit margin
7.9%
8.4%
8.5%
Total Debt / EBITDA
1.1x
1.3x
1.3x
Debt to total capitalization
25.9%
31.7%
30.3%
Balance Sheet
:
FCF / Total Debt
39.7%
32.4%
34.2%
Cash and cash equivalents
$19.8
$26.8
Accounts receivable
43.5
58.4
Inventory
45.1
57.3
Total assets
365.0
443.3
501.1
Accounts payable
10.1
16.4
Total debt
78.5
116.0
Equity
224.6
249.7
Liabilities and equity
365.0
443.3
501.1
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Business and industry overview
Company overview
Industry overview
Medical device manufacturer market growth ($bn)
Davis Industries is a leading provider medical equipment and sanitation products and services in the healthcare market:
Surgical Instruments:
Medical Sterilizers:
Single-Use Medical Disposables:
Customers
No customer accounted for more than 10% of consolidated net sales during FY2017, FY2016, or FY2015
Total addressable markets (“TAM”)
Surgical Instruments: [Size / growing at x%]
Medical Sterilization: [Size / growing at x%]
Single-Use Medical Disposables: [Size / growing at x%]
Market drivers
Aging US population
Improvements in medical technology and upgrading clinics
[TBU]
Competition
The overall market is highly competitive with peers such as:
2014
2015
2016
2017 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E
$137
$142
$148
$154
$161
$168
$175
$184
$194
$205
$215
$227
Deal structuring
Collateral analysis Risks and Mitigants
Financial covenant package
Covenant
Rationale
Maximum
Cash Flow Leverage
Ratio:
(Total Debt / EBITDA)
Rationale:
Assures adequate debt coverage
Minimum Interest Coverage
Ratio: (EBITDA / Total Interest)
Rationale:
Assures operating earnings can cover interest Minimum Fixed Charge Coverage
Ratio: (EBITDA less Capital Expenditures divided by Total Fixed Charges)
Rationale: Assures sufficiency of operating earnings for fixed requirements
Minimum Tangible Net Worth
Ratio: (Net Worth – Intangible assets) Rationale: Limits investments, directing cash flow to debt repayment
Minimum
Liquidity Ratio:
(Permit at any time its total of cash and marketable securities, to be less than a $ amount) Rationale:
Assures satisfactory liquidity and tracks performance vs. plan
Risk
Mitigant
Competition - Company faces rapid technology changes in the medical device and water purification industry.
[●] Company shows top line growth year over year [●] Company research leads to patents resulting in a competitive advantage [●] Company has communicated to the bank that they have significant R&D investment in process
Regulation - Industry is experiencing significant scrutiny and regulation by governmental authorities, which may lead to greater regulation in the future.
[●] Company regularly participants in seminars and webinars for proper regulation education [●] Company has not presented any significant regulation issues historically Commodity Risk - Company is heavily reliant on certain raw materials and can be adversely impacted by rising prices.
[●] Historically the company has been able to maintain strong margins [●] Company has a hedging strategy in place Collateral shortfall -
$86,000m deficiency if revolver is fully drawn [●] Company has maintained strong and consistent cash on their balance sheet [●] Company has low cash flow leverage under 1.50x and has had low cash flow leverage historically [●] Company patents and performance warrants enterprise valuation which will be used as bank security
Collateral description
Eligible collateral value ($k)
Authorized advance rate (%)
Available collateral ($k)
Accounts receivable
$69,078
80%
$55,262
Inventories
$61795
50%
$30897.5
Property and equipment, net
$55211
50%
$27605.5
Total collateral available
$113765
Less: (commitments)
$126,000
Excess / (deficiency)
(122235)
Don’t Recommend
Borrowing base recommendation
Term sheet Proposed terms and conditions
Borrower:
Davis Industries Corporation (the “Company”)
Facility Type:
Revolving Credit Facility
Amount:
$200,000,000
Tenor: 5 years
Maturity:
5 years from closing date Spread (Interest Rate): 4.00%
Undrawn Fee: 50 basis points
Use of Proceeds:
General corporate purposes
Financial Covenants:
Cash Flow Leverage covenant not to exceed 3.50x
Cash Flow Leverage calculated as Total Debt / EBITDA
Interest Coverage covenant not less than 3.00x
Interest Coverage covenant calculated as EBITDA / Total Interest
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Financial Model
Participant to paste excel model below – Below is for illustrative purposes only, not to be included
Year Ended July 31,
FCF Model ($mm)
2017PF
2018P
2019P
2020P
2021P
2022P
2023P
2024P
2025P
2026P
2027P
Revenue
480.3 525.0 588.0 646.8 646.8 646.8 646.8 646.8 646.8 646.8 646.8 % Growth
15.5%
9.3%
12.0%
10.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
EBITDA
99.8 105.0 117.6 129.4 646.8 646.8 646.8 646.8 646.8 646.8 646.8 % Margin
20.8%
20.0%
20.0%
20.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Interest Expense
(5.4)
(3.8)
(2.0)
(1.0)
(1.0)
(1.0)
(1.0)
(1.0)
(1.0)
(1.0)
(1.0)
Cash Tax Expense
(20.9)
(23.5)
(25.8)
(129.0)
(129.0)
(129.0)
(129.0)
(129.0)
(129.0)
(129.0)
Δ in NWC
(11.1)
(15.0)
(14.0)
153.7 - - - - - - Capex
(18.4)
(20.6)
(22.6)
- - - (22.6)
(22.6)
(22.6)
(22.6)
Dividend payments
(4.2)
(4.7)
(5.2)
- - - (5.2)
(5.2)
(5.2)
(5.2)
Free cash flow
46.6 51.9 60.8 670.5 516.8 516.8 489.0 489.0 489.0 489.0 Cumulative free cash flow
46.6 98.6 159.3 829.9 1,346.7 1,863.5 2,352.5 2,841.5 3,330.4 3,819.4
1867.0%
7-yr Payout
Mandatory debt repayments
- - - - - - - - - - Cash available for debt service
46.6 51.9 60.8 670.5 516.8 516.8 489.0 489.0 489.0 489.0 Cumulative free cash flow for debt service
46.6 98.6 159.3 829.9 1,346.7 1,863.5 2,352.5 2,841.5 3,330.4 3,819.4
Year Ended July 31,
Covenant Projections ($mm)
2017PF
2018E
2019E
2020E
2021E
2022E
2023E
2024E
2025E
2026E
2027E
R/C facility
126.0 79.4 27.4 - - - - - - - - Term Loan A
- - - - - - - - - - - Total Debt
126.0 79.4 27.4 - - - - - - - -
Leverage Ratio
1.26x
0.76x
0.23x
0.00x
0.00x
0.00x
0.00x
0.00x
Leverage Covenant
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
EBITDA Cushion ($)
63.78 82.32 109.76 129.36
646.80 646.80 646.80 646.80 EBITDA Cushion (%)
63.92%
78.40%
93.33%
100.00%
100.00%
100.00%
100.00%
100.00%
Interest Coverage Ratio
18.44x
27.79x
59.99x
129.36x
646.80x
646.80x
646.80x
646.80x
Interest Coverage Covenant
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
3.50x
EBITDA Cushion ($)
80.84 91.78 110.74 125.86
643.30 643.30 643.30 643.30 EBITDA Cushion (%)
81.02%
87.41%
94.17%
97.29%
99.46%
99.46%
99.46%
99.46%
Related Documents
Related Questions
Research and Development ExpenseInternational Business Machines Corporation (IBM) reported the following on its 2018 form 10‑K.
$ millions
2018
2017
2016
Total revenue
$79,591
$79,139
$79,919
Research, development and engineering expense
5,379
5,590
5,726
Number of new patents awarded
9,100
9,043
8,088
b. Compute the research, development and engineering expense per new patent for each year. What pattern do we observe?Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%).
2018
2017
2016
RD&E per patent as a percentage
Answer
Answer
Answer
arrow_forward
nd
A assessment.education.wiley.com
B Present Value Tables (1..
W https://education.wiley.
B ch01 (Fall 2020)
w Final Exam (Fall 2020)
Final Exam (FallI 2020)
-/6
Question 22 of 50
>
View Policies
Current Attempt in Progress
Sheridan Corporation's Perfume division has a segment margin is $92000 for the current reporting period. Total assets at the
beginning of the period were $807000 and $907000 at the end of the period. What is the division's ROI?
O 9.42%
O 10.74%
O 11.40%
O 5.37%
Save for Later
Attempts: 0 of 1 used
Submit Answer
MacBook Air
arrow_forward
Calculate the debt ratio for 2020 ________%
Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow.
Matthias MedicalComparative Balance SheetAs of December 31
2020
2019
Assets
Current assets
Cash
$397,220
$417,400
Accounts receivable, net
906,800
776,400
Inventory
743,000
681,000
Other current assets
381,300
247,000
Total current assets
2,428,320
2,121,800
Property, plant, & equipment, net
8,678,000
8,440,100
Total assets
$11,106,320
$10,561,900
Liabilities and Stockholders’ Equity
Current liabilities
$2,934,700
$2,846,000
Long-term debt
3,700,600
3,892,600
Total liabilities
6,635,300
6,738,600
Preferred stock, $5 par value
58,900
58,900
Common stock, $0.25 par value
104,600…
arrow_forward
Based on revenu test which of the foregoing are reportable segments? A. A,B,C
B. A,B,C,D
c.A,B,C,D,E
D. A,B
arrow_forward
S
Find online the annual 10 - K report for Costco
Wholesale Corporation (COST) for September 28, 2023
f. Did the company have any contingent liabilities at
the balance sheet date? Discuss the specific nature of
these contingencies and how (or whether) they are
expected to affect the firm's financial health
h
ASSEN
s
Ope
TOTAL ASSETS
CURRENT LIABILITIES
LABILITIES AND EQUITY
A
Der
Cap
OTT
L
se
org
TOTAL LIATES
COMMITMENTS AND CONTINGENCIES
COUNTY
10 suhted this
Consescanda
Talk
sil
TOTAL LIABUTES AND EQUITY
2/12
3/18
2241
17667
Sa
24741
2/14
4
04.15
17482 s
52.545
2321
7301
топ
2337
2174
1.589
22
5611
TRE
3377
242
2482
2555
2.558
BUX
4351
=
-
2
7.340
084
138931
21842
25194
21547
94111
arrow_forward
Need help with this accounting questions
arrow_forward
please help me with the answer and steps to solve it
arrow_forward
Can you help me with accounting questions
arrow_forward
Answer the following requirements on these financial accounting question
arrow_forward
Operating and Nonoperating Items in Boston Scientific's Income Statement
EXHIBIT 3.6
For Year Ended December 31, S mllllons
2018
2017
2016
$9,823
2,813
$9,048
2,593
$8,386
2,424
Net sales
Cost of products sold
Gross profit.
Operating expenses
Selllng, general and admlnlstratlve expenses.
Research and development expenses
Royalty expense
Amortlzatlon expense
Intanglble asset Impalrment charges.
ContIngent conslderatlon expense (beneflt)
Restructurlng charges.
Litigatlon-related charges
7,010
6,455
5,962
3,569
3,294
3,099
1,113
997
920
70
68
79
599
565
545
35
11
(21)
(80)
29
36
37
28
103
285
804
Operating expenses
5,504
5,170
5,515
Operating income
Other expense (income)
Interest expense
1,506
1,285
447
241
229
233
Other expense (income), net.
(156)
124
37
1,422
(249)
Income before income taxes
932
177
Income tax expense (benefit) .
828
(170)
Net income
$1,671
24
104
2$
347
Calculate the profit margin ratio for 2016
arrow_forward
HIC GROUP OF Companies
COMPARATIVE INCOME STATEMENT
For years ended 3rd December 2019 2020
Revenue and gains
Sales revenue 495,500 496,738.75
Interest revenue 278,500 279,196.25
Investment Income 71,700 71,879.25
Other revenue 101,500 101,753.75
Total revenue and gains 947,200 949,968
Expenses and losses
Cost of good sold 450,000 447,750
Selling&administrative 185,000 184,075
Computer (operating) 42,500 42,288…
arrow_forward
K
Find online the annual 10-K report for Costco Wholesale Corporation (COST) as of August 30, 2020.
a. Compute Costco's net profit margin, total asset turnover, and equity multiplier.
b. Verify the DuPont Identity for Costco's ROE.
c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020. Based on the DuPont Identity, what explains the difference between the two firms' ROE?
a. Compute Costco's net profit margin, total asset turnover, and equity multiplier.
The net profit margin is%. (Round to two decimal places.)
(Round to two decimal places.)
The total asset turnover is
The total asset turnover is
The equity multiplier is
b. Verify the DuPont Identity for Costco's ROE.
The ROE is%. (Round to two decimal places.)
c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020.
The net profit margin is%. (Round to two decimal places.)…
arrow_forward
Members of the board of directors of Security Check have received the following
operating income data for the year ended May 31, 2024
2b. S441,000)
SECURITY CHECK
Income Statement
For the Year Ended May 31, 2024
Froduct Line
ndurtrial
Hounehold
Syrtema
Syrtema
Tetal
Net Sales Revenue
$ 200,000
Cont of Goods Solt
Variable
27,000
47,000
Fied
200,000
2,000
222,000
Tetal Cont of Goods Sold
237,000
110,000
407,000
Gram Profit
a,000
270,000
222,000
Seling and Admiristratie tpen
Variable
64000
72,000
127,000
Fied
44,000
70,000
Tutal Seling and Administrative tpenn
Operting nme m
1000
S 17L000
207,000
S124,000
Memben of the boand are wrprised tat the indatrial wysem prodact line is not profie-
alle. They commisskon a ly o deermine wheher the company shoukd drop the line.
Company accountams estimate that dropping indlnrial syotema will decrease fised cot of
gah wl by SJK0 and decrease fised seling and administrative espenses by $12J0.
Requirements
1. Prepare a differemial analysis to show…
arrow_forward
Refine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC.
Consolidated Statement of Income ($ millions)
For Fiscal Year Ended
April 26, 2019
Net sales
$30,557
Costs and expenses
Cost of products sold
9,155
Research and development expenses
2,330
Selling, general, and administrative expense
10,418
Amortization of intangible assets
1,764
Restructuring charges, net
198
Certain litigation charges, net
166
Other operating expense, net
258
Operating profit (loss)
6,268
Other nonoperating income, net
(373)
Interest expense
1,444
Income (loss) before income taxes
5,197
Income tax provision
547
Net income (loss)
4,650
Net (income) loss attributable to noncontrolling interests
(19)
Net income (loss) attributable to Medtronic
$ 4,631
Consolidated Balance Sheet ($ millions)
April 26, 2019
Current assets
Cash and cash equivalents
$ 4,393
Investments
5,455
Accounts receivable, less…
arrow_forward
Refine Assumptions for PPE ForecastFollowing are the income statement and balance sheet for Medtronic PLC.
Consolidated Statement of Income ($ millions)
For Fiscal Year Ended
April 26, 2019
Net sales
$30,557
Costs and expenses
Cost of products sold
9,155
Research and development expenses
2,330
Selling, general, and administrative expense
10,418
Amortization of intangible assets
1,764
Restructuring charges, net
198
Certain litigation charges, net
166
Other operating expense, net
258
Operating profit (loss)
6,268
Other nonoperating income, net
(373)
Interest expense
1,444
Income (loss) before income taxes
5,197
Income tax provision
547
Net income (loss)
4,650
Net (income) loss attributable to noncontrolling interests
(19)
Net income (loss) attributable to Medtronic
$ 4,631
Consolidated Balance Sheet ($ millions)
April 26, 2019
Current assets
Cash and cash equivalents
$ 4,393
Investments
5,455
Accounts receivable, less…
arrow_forward
Operating and Nonoperating Items in Boston Scientific's Income Statement
EXHIBIT 3.6
For Year Ended December 31, S mllllons
2018
2017
2016
Net sale .
Cost of products sold
$9,823
$9,048
2,593
$8,386
2,424
2,813
Gross profit.
Operating expenses
Selllng, general and admlnIstratlve expenses.
Research and development expenses
Royalty expense
Amortlzatlon expense
Intanglble asset Impalrment charges
ContIngent conslderatlon expense (beneflt) .
RestructurIng charges.
LItigatlon-related charges
7,010
6,455
5,962
3,569
1,113
3,294
3,099
997
920
70
68
79
599
565
545
35
4
11
(21)
(80)
29
36
37
28
103
285
804
Operating expenses -
5,504
5,170
5,515
Operating income .
Other expense (income)
Interest expense
1,506
1,285
447
241
229
233
Other expense (income), net.
(156)
124
37
Income before income taxes
1,422
932
177
Income tax expense (benefit) .
(249)
828
(170)
Net income.
$1,671
$
104
$ 347
Calculate the operating expense margin ratio for 2016
arrow_forward
Calculate operating profit margin and net profit margin for the year 2018 and 2019.
arrow_forward
Required information
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Korbin Company follow.
KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31
2021
2020
$
$
467,052 357,800
281,165 223,625
185,887 134, 175
66,321 49,376
42,035
31,486
108,356
80,862
77,531 53,313
14,421 10,929
$
$
63,110
42,384
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative
expenses
Total expenses
Income before
taxes
Income tax expense
Net income
KORBIN COMPANY
Comparative Balance Sheets
2020
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
December 31
2021
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and
equity
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
2019
$…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning

Related Questions
- Research and Development ExpenseInternational Business Machines Corporation (IBM) reported the following on its 2018 form 10‑K. $ millions 2018 2017 2016 Total revenue $79,591 $79,139 $79,919 Research, development and engineering expense 5,379 5,590 5,726 Number of new patents awarded 9,100 9,043 8,088 b. Compute the research, development and engineering expense per new patent for each year. What pattern do we observe?Note: Round percentage to one decimal places (for example, enter 6.7% for 6.6555%). 2018 2017 2016 RD&E per patent as a percentage Answer Answer Answerarrow_forwardnd A assessment.education.wiley.com B Present Value Tables (1.. W https://education.wiley. B ch01 (Fall 2020) w Final Exam (Fall 2020) Final Exam (FallI 2020) -/6 Question 22 of 50 > View Policies Current Attempt in Progress Sheridan Corporation's Perfume division has a segment margin is $92000 for the current reporting period. Total assets at the beginning of the period were $807000 and $907000 at the end of the period. What is the division's ROI? O 9.42% O 10.74% O 11.40% O 5.37% Save for Later Attempts: 0 of 1 used Submit Answer MacBook Airarrow_forwardCalculate the debt ratio for 2020 ________% Matthias Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Matthias MedicalComparative Balance SheetAs of December 31 2020 2019 Assets Current assets Cash $397,220 $417,400 Accounts receivable, net 906,800 776,400 Inventory 743,000 681,000 Other current assets 381,300 247,000 Total current assets 2,428,320 2,121,800 Property, plant, & equipment, net 8,678,000 8,440,100 Total assets $11,106,320 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $2,934,700 $2,846,000 Long-term debt 3,700,600 3,892,600 Total liabilities 6,635,300 6,738,600 Preferred stock, $5 par value 58,900 58,900 Common stock, $0.25 par value 104,600…arrow_forward
- Based on revenu test which of the foregoing are reportable segments? A. A,B,C B. A,B,C,D c.A,B,C,D,E D. A,Barrow_forwardS Find online the annual 10 - K report for Costco Wholesale Corporation (COST) for September 28, 2023 f. Did the company have any contingent liabilities at the balance sheet date? Discuss the specific nature of these contingencies and how (or whether) they are expected to affect the firm's financial health h ASSEN s Ope TOTAL ASSETS CURRENT LIABILITIES LABILITIES AND EQUITY A Der Cap OTT L se org TOTAL LIATES COMMITMENTS AND CONTINGENCIES COUNTY 10 suhted this Consescanda Talk sil TOTAL LIABUTES AND EQUITY 2/12 3/18 2241 17667 Sa 24741 2/14 4 04.15 17482 s 52.545 2321 7301 топ 2337 2174 1.589 22 5611 TRE 3377 242 2482 2555 2.558 BUX 4351 = - 2 7.340 084 138931 21842 25194 21547 94111arrow_forwardNeed help with this accounting questionsarrow_forward
- Operating and Nonoperating Items in Boston Scientific's Income Statement EXHIBIT 3.6 For Year Ended December 31, S mllllons 2018 2017 2016 $9,823 2,813 $9,048 2,593 $8,386 2,424 Net sales Cost of products sold Gross profit. Operating expenses Selllng, general and admlnlstratlve expenses. Research and development expenses Royalty expense Amortlzatlon expense Intanglble asset Impalrment charges. ContIngent conslderatlon expense (beneflt) Restructurlng charges. Litigatlon-related charges 7,010 6,455 5,962 3,569 3,294 3,099 1,113 997 920 70 68 79 599 565 545 35 11 (21) (80) 29 36 37 28 103 285 804 Operating expenses 5,504 5,170 5,515 Operating income Other expense (income) Interest expense 1,506 1,285 447 241 229 233 Other expense (income), net. (156) 124 37 1,422 (249) Income before income taxes 932 177 Income tax expense (benefit) . 828 (170) Net income $1,671 24 104 2$ 347 Calculate the profit margin ratio for 2016arrow_forwardHIC GROUP OF Companies COMPARATIVE INCOME STATEMENT For years ended 3rd December 2019 2020 Revenue and gains Sales revenue 495,500 496,738.75 Interest revenue 278,500 279,196.25 Investment Income 71,700 71,879.25 Other revenue 101,500 101,753.75 Total revenue and gains 947,200 949,968 Expenses and losses Cost of good sold 450,000 447,750 Selling&administrative 185,000 184,075 Computer (operating) 42,500 42,288…arrow_forwardK Find online the annual 10-K report for Costco Wholesale Corporation (COST) as of August 30, 2020. a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. b. Verify the DuPont Identity for Costco's ROE. c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020. Based on the DuPont Identity, what explains the difference between the two firms' ROE? a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. The net profit margin is%. (Round to two decimal places.) (Round to two decimal places.) The total asset turnover is The total asset turnover is The equity multiplier is b. Verify the DuPont Identity for Costco's ROE. The ROE is%. (Round to two decimal places.) c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020. The net profit margin is%. (Round to two decimal places.)…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning

Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
